Bankruptcy alternatives are desired and looked for by millions of people in the US every single year.
The goal is to find financial relief and also to relieve your anxiety and stress that goes along with being very overwhelmed with debt.
Someone that enrolls in some form of bankruptcy alternative arrangement might be able to get a settlement for their debts for a lot less money then is actually owed, and avoid all the harsh consequences that come with bankruptcy filing.
Do You Have Some Of These Debt Problems?
Seeking out Bankruptcy Alternatives might be a good idea.
*You have 3 or more major credit cards
*Your income to credit card debit is 20% or more
*Your debt is causing undo stress in the marriage
*You use a credit card to purchase items that you should use cash for like utility bills, gasoline, or groceries
*You really haven’t any idea the amount of money you owe
*You are afraid to even look at the statements each month
*Debt collectors call almost every day
*You only pay the minimum payments on the credit cards
*You can’t sleep at night because you’re thinking about all you owe
*You have no savings
*You lie or hide your spending and statements from your spouse and others
*After you make a payment on the credit card, the following month you spend that amount or more
*If you happen to lose your job, there would be no way for you to pay any of your bills
*You have bounced checks
*You have not been able to get credit
*You will write a check, and hope to have enough to deposit before it goes through the bank
*You are at the limit, or near, on all the credit cards Some Other Ideas For Getting Out Of Debt
With a , there will be negotiators that work along with creditors to help lower the amount you owe. If you are overwhelmed with just the minimum payments or have become behind in your payments the this is probably a good option for you. will also work well if you don’t own a home or you lack the credit or equity necessary to get another mortgage or refinance when you no longer can afford the debts. In many cases, it’s the least expensive and fastest way for you to get debt free besides going bankrupt. This is assuming you will successfully complete this program and get your accounts settled.
This type will involve working with your creditors to try and lower the interest charges. In five years or less, you can be debt free. This method is thought to be a safer but a bit more expensive option compared to debt settlement because there is no need to get past due just to realize all the benefits with this kind of method.
Chapter 7 Bankruptcy
Doing this, you are free of your unsecured debts like, repossessions, medical bills, and credit cards, but you have to turn over your non-exempt property so the court can sell it to pay your creditors. If you don’t have an income or any assets, this could be a very ideal solution to debt relief. This option is really considered a very last resort because the credit implication will be severe. You should really consult with your attorney for advice before doing choosing this method.
Chapter 13 Bankruptcy
With this method, you are given a manditory payment plan and you have to give all your disposable income to the court up to five years or until your debts are paid in full. If you have become behind in your secured debts like mortgage loans and automobile loans, then this might be an appropriate solution.
Be sure to always seek the advice or your attorney before you make any final decisions. If you have a lot of credit card debt, than this option wouldn’t make any sense. There are better ways to get debt relief for this that affect your credit rating a lot less, but you will also pay way less in total cost. Remember Bankruptcy Alternatives need to be explored and do much research.
Liquidating Your Assets
If you own quite a bit of personal property, this option may be right for you. This very well could be the outcome with Chapter 7 bankruptcy, it all depends on the state’s exemptions and also what all property you own, without the horrible credit impact. That is to say, if you don’t qualify for programs like credit counseling or debt settlement and you own quiet a bit of assets, then it’s really foolish to not sell you things so you can pay the creditors so you don’t have to file bankruptcy.
Be sure and consult your attorney before you make any decisions.